By focusing the customers on the price of a product, you make the demand for the product
a. More elastic
b. Less elastic
c. Perfectly inelastic
d. None of the above
a
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A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will
A) rise and its total variable cost will rise even more. B) rise and its total variable cost will rise, but not by as much. C) fall but its total variable cost will rise. D) fall and its total variable cost will fall, but not by as much.
Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
A devastating earthquake destroys ten percent of the population in California. As a result: a. California's production possibility curve shifts outward
b. California moves up and to the left along its production possibilities curve. c. California moves down and to the right along its production possibilities curve. d. California's production possibility curve shifts inward.
For a steel factory, a decrease in the cost of electricity to the plant will cause the supply curve to:
A. become parallel to the price axis. B. shift to the left. C. shift to the right. D. become flatter.